ECONOMY | 14-08-2018 11:06

Gov’t unleashes 3-point plan to rein in dollar

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Macri, Caputo and Dujovne. An strict board for ruling the economy. | Cedoc.

The Mauricio Macri government is concerned about the exchange rate, with Argentina’s peso continuing its slide against the dollar.

On Monday, the dollar was selling for a record 30.68 pesos.

Macri’s economic team, led by Treasurer Nicolás Dujovne and Central Bank Governor Luis Caputo, plans to unleash a series of initiatives aimed at easing the effect of Turkey’s economic woes on the Argentine economy.

The government will focus on three points: Raising interest rates; the “gradual elimination” of the Lebac as a key tool, with the hope of boosting confidence and easing the volatility of the short-term peso-denominated bonds whose stock exceeds one billion pesos; and the suspension of daily sell-offs of Central Bank reserves stemming from the stand-by loan deal with the International Monetary Fund (IMF), which will be replaced from today (Tuesday) with a sole offer of US$ 500 million.